Office of the Governor: Sebelius asks agencies to reduce 2009 budgets

FROM THE OFFICE OF THE GOVERNOR

June 27, 2008

At the State Finance Council meeting today, Governor Kathleen Sebelius announced that she is asking all cabinet agencies to find ways to reduce their upcoming budget by one to two percent. Sebelius made a similar request to the Judicial and Legislative branches of Kansas government. Sebelius also communicated with the State Board of Education and the Board of Regents, who supervise the education of students in Kansas. While the Governor suggested that no cuts should be made in student-related expenses, she asked for review and reduction of overhead and administrative costs as the new fiscal year begins.

“Over the last six years we have made and kept important commitments that benefit the people of Kansas. A multi-year school finance plan has been fully phased-in; we are about to complete a ten-year Comprehensive Transportation Plan as promised; and increasing Medicaid costs for Kansans have been fully covered.

“We have also funded key economic development initiatives to provide substantial support for economic expansion.

“All of these achievements have been realized without increasing taxes, and through the hard work of Kansas business owners and workers creating a strong, growing economy.

“The Kansas economy is still performing quite well compared to other states. In the past year we have added thousands of jobs and tens of thousands more are still open across Kansas. This job growth has kept our unemployment rate well below the national average.

“Recently however, our growth has showed signs of slowing down. In addition, interest rates have fallen, causing our interest income to decrease.

“This past session the Legislature failed to decouple from federal tax legislation, which reduced state revenues by $87 million. And last month’s State General Fund receipts were $50 million below expectations.

“As a result we must now make adjustments,” Sebelius said.

The State of Kansas begins the 2009 fiscal year on July 1.